A managed service provider, often called an “MSP,” is a third-party contractor that manages services from an offsite location. IT service providers essentially take on everything that an in-house IT department would normally be responsible for. They provide server space for companies to use, run system updates, and even manage data and cyber security. For business owners, it is usually an “out of sight, out of mind” type of all-inclusive IT partner.

How Does Managed IT Services Work?

Managed IT services often work like this: the contractor (or MSP) owns the IT equipment that businesses use and manages all upkeep. This would mean that the provider would own the servers that the company uses, is responsible for running updates, network maintenance, cyber security, and so on. In today’s landscape, this often includes cloud computing services as well, but not always. Services are usually customizable to a company’s needs.

Payment is often in the form of a flat monthly fee and corresponds with what services the business uses and what sort of memory space their data takes up. This system means that the MSP is just as motivated as you are to keep things running smoothly and efficiently; they don’t profit from problems. It is usually more cost effective that hiring IT staff for companies that are smaller or are just not technology savvy.

Why Businesses Use Managed IT Services

Companies of every size use managed IT services. Many small businesses are stuck in an in-between space where they need the security and reliability of IT staff, but are not quite large enough or need enough services to warrant hiring IT staff in-house. Using a managed IT service provider is more cost effective for small businesses and offers professional cyber security and system maintenance, which many small businesses lack. The consistent monthly payment makes IT expenses predictable.

Managed IT services aren’t just for small businesses though. Many medium and even large businesses prefer to use an IT service provider for a few different reasons. One instance where an MSP makes more sense is for businesses that have many locations and/or many remote employees. If your staff is not all in one place, there is not really an advantage to having an on-location IT department. Another example is companies in industries that are just not in the business of technology. A number of companies in older industries, like construction and manufacturing just to name a few, might realize they need to step up their IT game but just aren’t familiar with it or don’t want to learn. Hiring an MSP becomes simply a more convenient option for today’s necessary data security and mobile computing.

Advantages of Managed IT Services vs. Traditional Model

With a managed IT service provider, you are locked into a predictable monthly cost. Your MSP is truly a partner, rather than a service provider that makes more money when you have technical problems or when systems break down. The MSP has the same goal as your company: to keep things running as smoothly and efficiently as possible. That is why the model of managed services is becoming increasingly popular in the IT world.

Managed IT Services

The demand for managed IT services grows as business technology needs continue to change. With each passing year there is a new trend in tech that businesses need to keep up with to stay competitive. Hiring an MSP contractor to manage your equipment, updates, back-ups, and the whole nine yards is an attractive option. It is often more cost effective, too!